Who are New Zealand's AML/CFT Supervisors?
Three regulators are tasked with ensuring that businesses adhere to the Anti-Money Laundering and Counter-Terrorist Funding Act of 2009's provisions aimed at preventing and tracking money laundering and terrorist financing.
The Reserve Bank of New Zealand (RBNZ)
Banks, life insurance, and non-bank deposit takers are all subject to regulation.
The Financial Markets Authority (FMA)
Securities issuers, trustee firms, futures dealers, collective investment schemes, brokers, and financial advisors are all subject to regulation.
The Department of Internal Affairs (DIA)
Money changers, non-deposit taking lenders, casinos, and any other financial institutions that are not regulated by the Reserve Bank of New Zealand or the Financial Markets Authority.
Compliance with AML/CFT regulations in New Zealand
Part A contains methods and procedures designed to help you in detecting, mitigating, and managing money laundering and terrorist financing risks.
Part B is devoted to the processes for establishing the identity of consumers and beneficial owners, including politically vulnerable individuals (PEPs).
There is no such thing as a one-size-fits-all anti-money laundering/counter-terrorist financing scheme. Each reporting organisation is distinct and confronts unique money laundering and terrorist financing concerns. You must create a programme that is tailored to your specific requirements. This provides you with the flexibility to carry out your duties in the manner that you see fit and to apply stronger and/or additional controls if necessary.
All AML/CFT programmes must be risk-based. The risk assessment serves as the foundation for your whole anti-money laundering/counter-terrorism financing operation. Your programme must demonstrate clearly the connections between recognised risks and the processes, rules, and controls that address those risks.
Conducting a review and audit of your AML/CTF programme
Every two years, or as asked by your AML/CFT supervisor, you must audit your AML/CFT programme (as well as your risk assessment). Your supervisor may request a copy of your audit.
It is essential that your auditor has the required expertise for the job and is completely independent of your organization's risk assessment process, as well as the design, implementation, and maintenance of your AML/CFT programme.
Designated services should conduct an audit of their anti-money laundering/counter-terrorism financing programme to verify that:
The programme is always relevant. Deficiencies in the program's efficacy are discovered, and any required changes are made as part of the evaluation.